How Your Home Can Bring In The Dough

If you are a homeowner, established or new, you may have heard about state and federal tax incentives for home improvements. Let’s face it; in today’s market of staggeringly decreasing home values wouldn’t it be nice if your home actually made money instead of costing you money? Curious as to actually how home improvements can have your house saving your checkbook from ruin?

One outstanding solution that may come to mind, which incidentally is typically the most expensive, is to install solar panels and/or wind turbines to your roof. I say outstanding because when we think of tax incentives we often think of switching to green energy solutions. The fact is that solar panes and/or wind turbines do provide an excellent source of electricity; which, in the long run, can pay for themselves and even have your electric company paying you. The only down side to this single improvement is the initial cost. Though state and federal government will typically reimburse 30% of cost up to ten thousand dollars, it’s just that, a reimbursement. What that means is you, the consumer, have to come up with that initial ten grand on your own. If you have it great, but if not there are other more reasonable less obvious improvements you can do.

Did you know installing energy efficient windows and appliances qualifies for a break on your taxes? Not only do new energy efficient windows and appliances save on your existing electric bill, but also the government rewards homeowners for making these changes. Every year when you file your income taxes there is, believe or not, a section on home improvements. If you made any improvements, list them. You might be surprised at the impact it has on your refund for that year. Other improvements that qualify for this include: new roof, heating/air conditioning upgrades, new insulation, low flow toilets, and so on. The point being, if you can think of a way to reduce your current usage of utilities to your home, chances are the government will reward you for it.

As if saving money on utilities and receiving a tax credit wasn’t enough, also note that any improvements to your home also innately increases your overall home value. Think of it as a win win win scenario.

So as you’re out eyeballing that electric car due to escalating fuel prices, consider the inside your home as well. When that washing machine foams at the lid and skids across the room on spin cycle like some kind of rabid animal, it has to be replaced anyway, so why not go green, and put a little money back in your pocket.

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